SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Biotech / Medical : Biotech Valuation -- Ignore unavailable to you. Want to Upgrade?


To: Sam Citron who wrote (7499)12/13/2002 6:01:45 PM
From: Biomaven  Read Replies (2) | Respond to of 52153
 
It sounds like beta to me.

Nope - close but not the same. Beta is the linear regression coefficient between a stock and the market. If you had a stock that was very volatile but moved inversely with the market it would have a high (positive) variance but a negative beta. If it had no correlation with the market at all, it would have a zero beta but could still have a high variance.

A high beta stock will always have a high variance, but the converse is not true.

Peter